Selling sites that sell services. How does this work?

[donnyv10IM]

Say I have a site that I use to sell or resell services such as logo design, SEO, whatever. Lets say the site is ranked, getting decent organic traffic and making about $500 a month. Also the site has been making steady income for about 6 -12 months. If the multipier is 30X, can I sell that site for $15K? Or am I going to have a problem because the site doesnt have "automated income" such as affiliate sales, adsense, dropshipping, CPA etc.? In other words, because I have to fufill the orders myself by doing the work, will that affect the value of the site? If someone buys the site, they might be geting the traffic and orders but they would still need to find someone to do the actual work. I mean I can refer them to the person I use, but wont that drag the value of the site down? Anyone have experience with this?

 

[donnyv10IM]

Im hoping someone can answer this. What about paid traffic? If you sell a site that only gets traffic from paid advertising, dont you somehow have to transfr that to the person youre selling the site to?

 

[Scorpion Ghost]

Now youre asking real questions, and nobody likes answering those.

Good questions. Following to see the replies, if you get any...

 

[jacksi]

Say I have a site that I use to sell or resell services such as logo design, SEO, whatever. Lets say the site is ranked, getting decent organic traffic and making about $500 a month. Also the site has been making steady income for about 6 -12 months. If the multipier is 30X, can I sell that site for $15K? Or am I going to have a problem because the site doesnt have "automated income" such as affiliate sales, adsense, dropshipping, CPA etc.? In other words, because I have to fufill the orders myself by doing the work, will that affect the value of the site? If someone buys the site, they might be geting the traffic and orders but they would still need to find someone to do the actual work. I mean I can refer them to the person I use, but wont that drag the value of the site down? Anyone have experience with this?

Ok, it's tricky. Your site is worth what someone is willing to pay for it.

Generally multiply your profit per annum in a general range of 2-4x and that's ballpark a good number for start with for valuation.

Automated income is worth more, so you'd be looking at the higher range, manual labour intensive income is worth less, so you'd be at the lower range. If prospective buyer has to hire someone to run this company thus effected their ppa, this will effect your valuation. Not going to buy your business at 3 x ppa and then hire someone to do the work so now I've bought it at 6 x ppa.

With that being said, are you doing something interesting? Does your site have any IP that can be leveraged? Is there anything unique your doing? Is there a replicable system in place that the buyer can replicate and expand to push growth? All this shit is important and worth something (amounts vary but it is worth something, sometimes these details are worth more than your business in it's entirety)

What's the growth looking like, are we high growth or low growth? This will effect your valuation. High growth month over month = higher valuation.

Buying/selling a business is not like buying and selling a car, there is a tonne of variables that effect purchase prices. Some things matter more to certain buyers than others and there is absolutely no set multiplier when putting a value on a business.

 

[SportsPredict]

You already stated a few strong price influencers, SaaS right now is booming, especially on Flippa, which could even go for x20, but there's a reason for that. Because SaaS is low maintenance and has a lot of expansion possibilities, there are a lot of key factors that have to be gauged, and it'd be impossible from just a description.

It really depends on the niche, whether it's easy for competition to be made for it and if it's something that'll last / or can be automated. From just your description, I would not pay more than $3000 for it.

 

[tipsavvy]

You mentioned that the site is making $500/month - how is that?

Is the pricing displayed on the website and they can order it through the shopping cart?

 

[donnyv10IM]

You already stated a few strong price influencers, SaaS right now is booming, especially on Flippa, which could even go for x20, but there's a reason for that. Because SaaS is low maintenance and has a lot of expansion possibilities, there are a lot of key factors that have to be gauged, and it'd be impossible from just a description.

It really depends on the niche, whether it's easy for competition to be made for it and if it's something that'll last / or can be automated. From just your description, I would not pay more than $3000 for it.

Thats only 6x, I would never sell it for that cheap.

 

[BassTrackerBoats]

Thats only 6x, I would never sell it for that cheap.

You are not selling a business with that revenue, you are selling someone a job.

That eliminates a lot of the value and 15K for that would be a very bad investment.

 

[donnyv10IM]

You are not selling a business with that revenue, you are selling someone a job.

That eliminates a lot of the value and 15K for that would be a very bad investment.

Well, that already occurred to me, hence the original post. Also if the site is already getting targeted organic traffic and orders on autopilot, that definitely should be taken into consideration. $15k might be too steep, but $3k is little low.

 

[buhebutlerpp]

i think every sale depends on negotiation between buyer and seller. if you can convince the buyer that it is worthwhile to buy your site, then there's no problem in selling these sites.

of course you have to do a good copywriting and teach them how to run these sites later on. just go to flippa and post your site, i think someone must be interested to buy.

 

[BassTrackerBoats]

Well, that already occurred to me, hence the original post. Also if the site is already getting targeted organic traffic and orders on autopilot, that definitely should be taken into consideration. $15k might be too steep, but $3k is little low.

I agree 3K is a little low but not that much off as this is not a set it and forget it with some minor customer service SaaS. It is a person who has a process to make 500 a month that is largely manual.

Kudos to you for figuring out and working to generate that and I wish I could offer a fair multiplier as to value but pragmatically 15 is a lottery ticket winner for something that generates 500 a month via manual labor.

Advertise it for 9K and see if you get some bites.